During 2017,Jimmy Incorporates His Data Processing Business

question 21

Multiple Choice

During 2017,Jimmy incorporates his data processing business.Jimmy is the sole shareholder.The following assets are transferred to the corporation:
Cash $2,000
Computer Equipment:
Fair market value 20,000
Adjusted basis 12,000
Original cost 24,000
Furniture:
Fair market value 20,000
Adjusted basis 32,000
Original cost 64,000
​
How much gain (loss) will Jimmy recognize from the transfer of the assets to the corporation?

• A)$-0-
• B)$(4,000)
• C)$8,000
• D)$20,000
• E)$(12,000)

---

Definitions:

Proper Places

Suitable or appropriate locations for people or things.

Misplaced File

A document or electronic file that is not in its correct or designated location, potentially leading to inefficiency or loss of information.

Reconstruct

To rebuild something that has been damaged or destroyed back to its original state.

Original Documents

The authentic, first-generation documents or records, not reproductions or copies.